Spending on the Central and Eastern Europe big data and analytics market will reach $4.4 Billion in 2020, according to IDC
According to the latest Worldwide Semiannual Big Data and Analytics Spending Guide from International Data Corporation (IDC), big data and analytics spending in Central and Eastern Europe (CEE) will exceed $3 billion in 2017 and reach $4.4 billion in 2020, achieving a 12.1% compound annual growth rate (CAGR) over a five-year-forecast period.
Business and IT services will contribute over 58% to the overall market spending in CEE, with an increasing market share over the forecast period, reaching 63% in 2020. Hardware investments will be the fastest growing submarket, with a 16.4% CAGR, as enterprises invest mainly into storage. In terms of software, cognitive software platforms, content analytics, and search systems will be the fastest growing groups, with CAGRs all exceeding 18%. Investments into end-user query, reporting tools, relational data warehouse management tools, and enterprise performance management applications will reach $0.48 Billion, generating over 55% of the total software market spending in the region.
"A strong focus remains on business and consulting services," says Tom Vavra, associate vice president for Software and Customer Insights and Analysis with IDC. "That indicates the market is ready for wider-scale adoption, but companies still have a lot of questions they need to answer before 'jumping in with both feet'". Similarly, hardware growth forecasts point toward a market in preparation. "Hardware investments are expected to grow most rapidly over the next five years, which indicates that there are also a lot of CEE organizations that need to put the right platform in place before moving to the next stage of big data implementation," said Vavra.
Banking, telecommunications, and federal and central government will be the verticals with highest big data and analytics investments over the forecast period. Banking will be the fastest growing vertical market, with double-digit year-on-year growth as well as a 13.5% CAGR.
“Enterprises in CEE are starting to realize the potential of big data analytics. This will keep the market growing robustly across all verticals, with accelerating growth towards the end of the forecast period,” says Elena Szolgayova, research analyst for IDC's Customer Insights and Analysis.
In terms of company size segments, organizations with over 500 employees will generate more than 67% of the market revenue in 2017. Although growth dynamics will be similar across all company sizes, large businesses (500-999 employees) will be the fastest growing market segment, with 12.7% CAGR over the 2016-2020 period.
From a geographical perspective, CEE is one of the regions with a relatively small spending share of the worldwide market, comparable to the Middle East and Africa or Canada. Romania will be the fastest growing country in terms of big data and mobility spending, with a forecast CAGR of almost 16%, followed by the Czech Republic and Hungary, each with a CAGR slightly above 13% over the forecast period.
The Worldwide Semiannual Big Data and Analytics Spending Guide is designed to address the needs of organizations assessing the big data and business analytics opportunity by geography, industry, and company size. The Spending Guide provides subscribers with revenue projections for 15 technology and service categories across 19 industries, five company size bands, and 53 countries. Unlike any other research in the industry, the comprehensive Spending Guide was designed to help IT decision makers to clearly understand the industry-specific scope and direction of big data and business analytics opportunity today and over the next five years.
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